Stocks Rising into Final Hour on Stimulus Hopes, Vaccine Optimism, Oil Gain, Commodity/Financial Sector Strength

 

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 23.1 -6.4%
• Bloomberg Global Risk On/Risk Off Index 1,221.0 +103.0 points

• Euro/Yen Carry Return Index 130.46 -.23%

• Emerging Markets Currency Volatility(VXY) 10.3 +.5%

• S&P 500 Implied Correlation 49.1 -1.7%

• ISE Sentiment Index 139.0 +33.0 points
  

• Total Put/Call .88 +10.0%

• NYSE Arms .80 -67.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 52.80 -2.53%
  

• US Energy High-Yield OAS 581.49 -.62%

• European Financial Sector CDS Index 58.62 -4.2%

• Italian/German 10Y Yld Spread 113.0 -3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 58.10 -.46%
  

• Emerging Market CDS Index 161.40 -1.34%
  

• iBoxx Offshore RMB China Corporate High Yield Index 182.29 +.11%

• 2-Year Swap Spread 8.25 +.25 basis point

• TED Spread 15.0 -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -17.0 +.25 basis point
  
• MBS  5/10 Treasury Spread  74.75 +1.75 basis points
  
• IHS Markit CMBX BBB- 6 72.5 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 62.46 +.27%
• 3-Month T-Bill Yield .07% unch.
  

• Yield Curve 77.0 -1.5 basis points
  

• China Iron Ore Spot 154.0 USD/Metric Tonne +.76%

• Citi US Economic Surprise Index 77.50 +1.7 points

• Citi Eurozone Economic Surprise Index 137.4 -.9 point
  

• Citi Emerging Markets Economic Surprise Index 68.0 +.9 point

• 10-Year TIPS Spread 1.91 +3.0 basis points
• 100.0% chance of no change at Jan. 27th meeting, 100.0% chance of no change at March 17th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +103 open in Japan 
• China A50 Futures: Indicating +90 open in China

• DAX Futures: Indicating +29 open in Germany

Portfolio:

• Slightly Higher: On gains in my medical/tech/industrial/consumer staple sector longs
  

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts
  

• Market Exposure: Moved to 75% Net Long